US Real Estate Investment Platform BuildBlock Raises 10 Billion Won in Funding

BuildBlock's residential house in Los Angeles, USA

Build Block Inc, a U.S. real estate investment and purchasing platform, announced on the 10th that it has successfully raised 10 billion KRW in its first corporate funding round (Series A).

The first round included participation from IS Dongseo, Crit Ventures, and existing investor Primer Saz?.

Build Block successfully secured seed investment in March 2020 with participation from Shinhan Capital, Dunamu & Partners, and Hana Ventures, followed by Pre-A investments last year from KB Investment, Hanla Holdings, and Quantum Ventures Korea.

Build Block provides overseas real estate investment information and assists with administrative procedures. Targeting key areas of interest for Koreans such as California (LA, San Francisco), New York, New Jersey, and Texas (Austin), it offers brokerage of suitable products and necessary administrative services for investment, children's study abroad, and immigration without having to visit the U.S. directly. It also provides information on procedures for legally transferring money and accounting and tax matters that differ from those in Korea.

Beyond simple brokerage, Build Block has professional personnel with technical licenses required for remodeling construction, operations, loan procedures, and permits, and also operates a comprehensive construction subsidiary locally, enabling it to provide a wide range of services necessary for purchasing or investing in U.S. real estate.

When investing in U.S. real estate through Build Block, investment methods are divided into three types: long-term investment, short-term investment, and new construction and development. Most transactions involve establishing a U.S. local special purpose entity under the customer's name, acquiring real estate through the special purpose LLC (Limited Liability Company).

Afterward, the local team manages property operations such as leasing and construction, and considering future investment returns, investors can recover funds by selling if they wish. Investors can enjoy legitimate tax-saving benefits through consulting during this process.

Long-term investment involves generating stable income through monthly rent and selling once the target capital gain is achieved, with Build Block managing everything from local tenant interviews to property maintenance. Short-term investment is a strategy of purchasing old U.S. houses at low prices, remodeling them (Flip), or expanding homes with yards or garages (ADU) to resell at a higher price for capital gains. Investors can check progress through reports provided on Build Block’s online platform.

As of May, Build Block surpassed a cumulative real estate transaction volume of 100 billion KRW and recorded sales exceeding 10 billion KRW in the first half of this year, turning profitable. Services previously offered to individual customers will also be expanded to corporate and financial institution clients.

Build Block has offices in Silicon Valley headquarters, LA, San Francisco, New York, Texas, and Yeouido, Korea, and established a Singapore corporation at the end of last month. With this funding, Build Block plans to establish branches in Hawaii, Washington (Seattle), Boston, Georgia, Atlanta, and South Carolina within the year to further expand its market.

Jiwon Jung, CEO of Build Block, stated, "Our goal is to grow into a global investment platform providing services to more countries beyond Korea and the U.S."